This earnings season, expect companies to keep margins high 'the usual way, by firing people'

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 76 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 34%
  • Publisher: 97%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

When companies report second-quarter earnings this week, it’ll be something of a moment of truth for the economy.

Lockdowns left shoppers burning stimulus cash on AirPods and Nintendo Switches to dilute boredom and anxiety. Supply convulsions from the war in Ukraine rerouted spending from things to pass the time to things, like groceries, that were needed to survive.Lockdowns left shoppers burning stimulus cash on AirPods and Nintendo Switches to dilute boredom and anxiety.

“It keeps getting disproved by the actual numbers,” Sheraz Mian, director of research at Zacks, said of the recession forecasts. “The bears keep pushing it out to the next quarter and the next quarter. “So the biggest thing I’ll be watching out for is whether we are in the same kind of trend line we’ve been seeing the last few quarters or if things really are weakening.”Q2 Earnings, Delta, JPMorgan For companies in the S&P 500 index overall, FactSet forecasts a 7.

“While the Airlines have sounded extremely confident on demand all year, their visibility / confidence has only extended as far as the summer,” the analysts said in a research note. “However, we will now start to get our first glimpses into what the fall booking curve looks like, which is important to fend off the demand bear case.”

“The main driver on top of easy comparisons will be AI,” she said. “This is really the biggest theme in our portfolio right now.” Put another way, of the $15.45 trillion in sales that those 500 companies put up last year, $1.87 trillion went straight to profits. Every 0.1% of the S&P 500’s margins in 2023 added $1.87 billion to those businesses’ bank accounts.

Efforts by executives to repeat the abnormal gains for investors through a formula of price hikes and layoffs represent a multi-pronged threat for already-struggling consumers: The prospect of losing a job, yet still having to pay up at checkout, even if weaker demand overall nudges the nation into a downturn.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stock futures are flat ahead of a key inflation data week for Wall Street and the kickoff of second-quarter earnings seasonWall Street is entering its first full trading week for July with two key inflation reports due out this week and the kickoff of second-quarter earnings season.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks rise slightly ahead of key inflation data this week and the start of Q2 earnings season: Live updatesStocks were little changed as investors prepared for a slate of inflation data later in the week and braced for the start of the second-quarter earnings season.
Source: CNBC - 🏆 12. / 72 Read more »